🏠 Transferring property to children: tips for parents

Transferring property to children: how to avoid disputes

Would you like to transfer a property to your children to avoid disputes and keep the property in the family? This approach can make sense, but it also harbours challenges. Here you can find out what you should bear in mind to make the transfer smooth and legally secure.

When does it make sense to transfer it to children?

• A child: If there is only one child, the transfer can be uncomplicated as there are no disputes over usage.
• Several children: This is where things can become more difficult, as disagreements over the use of the property can lead to conflicts.
• Self-utilisation by the child: The transfer makes sense when the child is an adult, financially independent and able to use and maintain the property themselves.

Important legal aspects

• Community of accrued gains: During the divorce phase, no property shares may be transferred without the consent of the other partner, as the property is part of the community of accrued gains.
• Minor children: If the child is still a minor, the guardianship court must approve the transfer.

Tax law aspects of the transfer

• Parents can buy property up to a value of 400,000 euros tax-free to their children.
• Gift tax is payable on higher values if the child does not use the property themselves.

Why is careful planning important?

Transferring the property without prior planning can lead to legal and tax problems. Clarify all questions relating to ownership rights, the financial burden for your child and possible tax consequences before you act.

Conclusion: Avoid disputes, protect the family

Transferring a property to your children can be a good way to avoid disputes and keep the property in the family. With careful planning and legal advice, you can ensure that this step is successful and conflict-free.

Your contact at FLEXMAKLER
Robert Schüßler
Property valuer (EIA and IHK)

Note: This text is for information purposes only and does not constitute legal or tax advice. Please consult an expert if you have individual questions.